Date of Award
Master of Valuation Sciences
Ernest A. Demba
For thirty years researchers warned of potential danger,3 oi electromagnetic fields ( EXF) near electrical power lines and substations. The Environmental Protection Agency is presently reviewing the research to date to see if a substantial health hazard from EMFs threaten public health.
The Appraiser studied two subdivisions built 1985- 87 in Brentwood, Tennessee to see if EMF publicity stigmatized 6 homes adjoining TVA transmission lines right of way (AT) by decreasing expected s ales price compared to 44 homes not adjoining right of way (NAT).
In this small sample of convenience (6 AT subjects), two sold before 1989 at a gain of value. Three sold in 1989 and one in 1991 at a loss of value from their previous sale. One NAT close to the lines but not adjoining sold in 1989 at a loss from previous sale. Five properties had a mean loss of 20% of expected value or $50,000.
A comparison of means for ATs and NATs showed an - 18.45% loss/ difference for ATs, indicative of probable stigma. NAT comparables mean price/ square foot (P/SF) was $72.18. AT subjects P/ SF was $58.86.
Of Ninety NATs in the same neighborhood sold more than once since construction, only one lost value from previous sale. Forty-four NAT comparables mean annual appreciation was +3.779 prior to 1989 and +2.74'% since 1989.
The year 1989 marked an increased public awareness of research on EMF negative health effects . AT homes in the subject neighborhood increased in value prior to 1989 but lost value on sale in 1989 and thereafter compared to the general appreciation experienced between s ales by neighborhood NAT homes.
Hirst, Robert T., "Adjusting Property Values for Power Lines: An Exploratory Study" (1991). Theses. 797.
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